Making the right investment choices

While the UK has recently dragged itself out of the recession, one industry that was largely unaffected by the financial crisis was the buy-to-let sector as investors continued to enjoy strong returns despite the downturn hitting almost every other area of the economy.

So with private landlords benefiting from high demand for their properties and rent prices reaching record levels, the lettings game has been considered a particularly attractive business opportunity - but it is by no means a guaranteed source of profit, as there are still a lot of variables at play.

What we're talking about is the need for investors to make the right choices when purchasing their properties, attracting tenants and maintaining their assets, as they need to get things right if they're going to build a portfolio that will bring them impressive yields.

And by taking into account what it is that aspiring landlords from the continent are looking for as they try to get a slice of the action in Britain's buy-to-let sector, it's possible for domestic investors to maximise their chances of success.

According to Dr Rohan Weerasinghe, an author, property investor and professional speaker, entrepreneurs from Europe look for areas of high demand and properties that offer the strongest yields - so domestic landlords should so the same.

"[Foreign investors] like to target standard buy-to-let apartments in areas of high demand. [They also target] houses of multiple occupation - both in the south and north - as these yield high incomes," he said.

"Buy-to-let properties in the north that are cheaper and rent easily and produce a moderate but steady income [are also popular, as are] London properties in stable areas with high rental demand."

With investors from the continent being well aware of the most effective ways to maximise their profits in Britain's buy-to-let sector, it's important that landlords from the UK aren't outsmarted in an increasingly competitive market.

And in order to safeguard their investments to avoid any unexpected costs threatening their budgetary plans, landlord insurance policies will be vital to covering repairs and essential maintenance.